Card Factory, the UK’s biggest store for greeting cards, gifts, and party supplies, is happy to announce that it has bought all of SA Greetings Corporation (Pty) Ltd and its subsidiaries, which do business as SA Greetings, for GBP2.5 million, which was paid in cash.
SA Greetings is South Africa’s biggest wholesaler of greeting cards and gift boxes. It also owns and runs a roll-wrap production facility and runs 24 “Cardies” retail stores. Franchisees run four more “Cardies” stores. Its main office and warehouse are in Johannesburg, and its sales offices are in Durban and Cape Town.
Card Factory used its working capital to pay for the purchase, which is expected to help the company make more money. SA Greetings had an unaudited EBITDA of GBP591,000 and a PBT of GBP165,000 from unaudited net sales of GBP9.4m in the 12 months leading up to February 28, 2023. On this date, its net assets were worth GBP5.8m, and its gross assets were worth GBP8.5m. (The rate of exchange was 20 ZAR to 1 GBP 1).
South Africa is one of the places where Card Factory wants to expand its partnerships. This strategic growth pillar is backed up by the purchase of SA Greetings, which gives the company access to key wholesale accounts through its printing, merchandising, and storage capabilities.
CEO Darcy Willson-Rymer made the following comment:
“We are delighted to have completed the acquisition of SA Greetings and look forward to working with our new colleagues. Under the continued leadership of SA Greetings MD, Willie Engelbrecht, we will closely collaborate to further enhance and develop opportunities for the Card Factory and SA Greetings businesses.
SA Greetings brings with it significant experience operating a wholesale business, which can inform and support development of our retail partnership business, and is entirely aligned with Card Factory’s strategic plan for international expansion. As well as giving us a foothold into our target South African market, we will also be using their mature printing, merchandising and warehousing facilities to understand how we can deliver similar local capability in other target markets.”
